Given the income statement below, Mega Trade Inc. wants to find the resulting net income for the year 2018 (in million). What is the right amount? Income Statement ($ Million) YEAR ENDYEAR ENDYEAR ENDYEAR END 2015201620172018 Sales 1,234.901,251.701,300.401,334.40 Cost Sales -679.1-659-681.3-667 Gross Operating Income Selling & Administration-339.7-348.6-351.2-373.3 Depreciation-47.5-52-55.9-75.2 Other Income/Expenses11.87.678.2 Earnings Before Interest and Taxes Interest Income1.31.41.72 Interest Expense-16.2-15.1-20.5-23.7 Pre Tax Income Income Taxes-56.8-64.2-67.5-72.6 Net Income Dividends-38.3-38.7-39.8-40.1 Addition to Retained Earnings

Income Statement is part of Financial Statements statement which represents Revenue and Expenses…

Answered: Given the income statement below, Mega…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 74E

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Given the income statement below, Mega Trade Inc. wants to find the resulting net income for the year 2018 (in million). What is the right amount?


Income Statement ($ Million)
	YEAR END	YEAR END	YEAR END	YEAR END
	2015	2016	2017	2018
Sales	1,234.90	1,251.70	1,300.40	1,334.40
Cost Sales	-679.1	-659	-681.3	-667
Gross Operating Income

Selling & Administration	-339.7	-348.6	-351.2	-373.3
Depreciation	-47.5	-52	-55.9	-75.2
Other Income/Expenses	11.8	7.6	7	8.2
Earnings Before Interest and Taxes

Interest Income	1.3	1.4	1.7	2
Interest Expense	-16.2	-15.1	-20.5	-23.7
Pre Tax Income

Income Taxes	-56.8	-64.2	-67.5	-72.6
Net Income

Dividends	-38.3	-38.7	-39.8	-40.1
Addition to Retained Earnings

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